HONG KONG, April 2, 2013 /PRNewswire/ -- China Yongda Automobiles Services Holdings Limited ("Yongda Auto" or the "Company" and, together with its subsidiaries, the "Group", stock code: 03669.HK), a leading passenger vehicle retailer and comprehensive service provider in China, opened new 4S outlets rapidly amid the revived macro economy in the first quarter of 2013, entering another high speed expansion stage.
Yongda Auto performed outstandingly in the first quarter, with sales network expanded continuously and enjoyed sweeping progress. Owned by the Company, Yongda Nantong Porsche Center, Yongda Jaguar/Land Rover Huzhou 4S Store, Yongda Audi Huzhou 4S Store, BMW Shengzhou 4S store and the 2nd BMWJiangyin 4S store have been opening progressively in the first quarter. Subsequently, the Company will continue to open new outlets with high speed in the second quarter. Its world’s largest Audi urban showroom flagship store - Audi Shenjiang Store, BMW urban showroom flagship store – BMW Baocheng Huaihai Store, Audi Baoshan Store and Bentley Shaoxing Store will open in the near term.
According to China Association of Automobile Manufacturers and Mckinsey, a global management consulting firm, China’s passenger vehicle market recorded a steady growth in 2012, sales up approximately 8% from 2011. Among which, the luxury and ultra-luxury segments continued to maintain rapid growth and achieved a high growth rate among all market segments in China’s passenger vehicle sales. Moreover, owing to the rise in passenger vehicle ownership and the aging of passenger vehicles in China, after-sales market continued to achieve rapid growth. The after-sales services for the luxury and ultra-luxury segments are expected to maintain a compound annual growth rate ("CAGR") of approximately 30% over the next five years.
Benefiting from the steady growth of sales of passenger car and the number of retained motor vehicles, automobile distributors enjoy huge room for profit increment, among which those well-capitalized ones possess even greater advantages as for the on-going development, and the auto dealers mainly focus on luxury and ultra-luxury brands will enjoy a profitability that goes beyond the industry average level. In addition, along with the gradually rising proportion of after-sales services business that with higher gross profit margin accountable for the overall profit structure of auto distributors, companies that equipped with comprehensive auto services value chain will embrace a more sustainable business growth, as well as a stronger competitive edge.
As a leading distributor for luxury and ultra- luxury brands automobile, Yongda Auto is among top ten auto distributors in China, and possesses a strong brand portfolio of luxury and ultra-luxury automobile including BMW, Audi, Porsche, Jaguar Land Rover, Infiniti, Cadillac and etc. The brands under the Group’s distribution target at high-end market, and achieve balanced combination. The Group’s sales network has a decided advantageous presence in East China, with strong automobile service value chain expand capability. As at the first quarter of this year, a number of research and investment institutions including Oriental Patron, Haitong International, Shenyin Wanguo, UBS, and Sun Kung Kai has rated BUY to Yongda(3669) with target price close to HKD10, and expect more noteworthy performance of the Group in capital market in the coming future.
About China Yongda Automobiles Services Holdings Limited
Yongda Auto is a leading passenger vehicle retailer and comprehensive service provider in China focused on luxury and ultra-luxury brands. Yongda Auto has a strong brand portfolio of luxury and ultra-luxury brands including BMW, MINI, Audi, Porsche, Jaguar, Land Rover, Infiniti, Cadillac, Volvo and Bentley. It operates and has obtained manufacturer’s authorizations to open a total of 106 outlets. Its network has a strong presence in East China, including Shanghai, and has expanded into other regions in China. In addition to new passenger vehicle sales business, Yongda Auto also provides customers with a comprehensive range of automobile-related services through its "one-stop shop" approach. These include after-sales services, automobile rental services, as well as a wide array of services that it offers in connection with pre-owned vehicles, automobile insurance products, and vehicle inspection etc.
Issued by Porda Havas International Finance Communications Group for and on behalf of China Yongda Automobiles Services Holdings Limited.
